The Telecom Secretary of India, Telecom Commission has approved the revision of annual 2G spectrum usage charges payable by telcos, starting January 1,2009.

The spectrum usage charges, payable quarterly by telcos as a percentage of their Adjusted Gross Revenues (AGR), will rise across the board by 1% for spectrum up to 8 MHz and 2% for spectrum allocated above 8 MHz in any Wireless circle under consideration. Just yesterday we had written about the Spectrum Charges paid by cellular operators to the Government in Q2-FY09 totaled to USD 164 mn]

Bharti Airtel, Vodafone Essar and Idea Cellular will be the worst hit as they have spectrum in excess of 8 MHz in some circles. RCom will be the least hit.

The decision on the quantum / timeline of the one-time SEC, proposed to be payable by operators in receipt of 2G spectrum in excess of 6.2 MHz, has been deferred for now.

Proposed 3G Spectrum Charges in India:
3G services, if offered on a stand-alone basis (i.e. without 2G services), the annual charge would be 3% of AGR. Existing 2G operators which, going forward, also offer 3G services, would have to pay another 1% of their AGR as an annual spectrum charge.

Tags: Mobile India, 2G Wireless, 3G, Spectrum India